XML 23 R12.htm IDEA: XBRL DOCUMENT
v3.20.2

Loans | 6 Months Ended
--- | ---
Jun. 30, 2020
Loans [Abstract] |
Loans | NOTE 5 - LOANS Oriental’s loan portfolio is composed of four segments, commercial, mortgage, consumer, and auto. Loans are further segregated into classes which Oriental uses when assessing and monitoring the risk and performance of the portfolio. The composition of the amortized cost basis of Oriental’s loan portfolio at June 30, 2020 was as follows:
|  | June 30, 2020
|  | Non-PCD |  | PCD |  | Total
|  | (In thousands)
Commercial loans: |  |  |  |  |  |  |  |  |
Commercial secured by real estate |  | $ | 857,552 |  | $ | 270,555 |  | $ | 1,128,107
Other commercial and industrial |  |  | 735,511 |  |  | 115,234 |  |  | 850,745
Commercial Paycheck Protection Program (PPP Loans) |  |  | 278,059 |  |  | - |  |  | 278,059
US Loan Program |  |  | 325,358 |  |  | - |  |  | 325,358
|  |  | 2,196,480 |  |  | 385,789 |  |  | 2,582,269
Mortgage |  |  | 874,292 |  |  | 1,541,902 |  |  | 2,416,194
Consumer |  |  |  |  |  |  |  |  |
Personal loans |  |  | 344,568 |  |  | 2,456 |  |  | 347,024
Credit lines |  |  | 48,826 |  |  | 489 |  |  | 49,315
Credit cards |  |  | 65,198 |  |  | - |  |  | 65,198
Overdraft |  |  | 116 |  |  | - |  |  | 116
Auto |  |  | 1,454,987 |  |  | 37,409 |  |  | 1,492,396
|  |  | 1,913,695 |  |  | 40,354 |  |  | 1,954,049
|  |  | 4,984,467 |  |  | 1,968,045 |  |  | 6,952,512
Allowance for credit losses |  |  | (151,531) |  |  | (81,170) |  |  | (232,701)
Total loans held for investment |  |  | 4,832,936 |  |  | 1,886,875 |  |  | 6,719,811
Mortgage loans held for sale |  |  | 19,432 |  |  | - |  |  | 19,432
Total loans, net |  | $ | 4,852,368 |  | $ | 1,886,875 |  | $ | 6,739,243
At June 30, 2020, and December 31, 2019, Oriental had a carrying balance of $157.4 million and $134.0 million, respectively, in current status, in loans held for investment granted to the Puerto Rico government, including its instrumentalities, public corporations and municipalities, as part of the institutional commercial loan segment. All loans granted to the Puerto Rico government are general obligations of municipalities secured by ad valorem taxation, without limitation as to rate or amount, on all taxable property within the issuing municipalities and one loan to a public corporation acquired in the Scotiabank PR & USVI Acquisition. The good faith, credit and unlimited taxing power of each issuing municipality are pledged for the payment of its general obligations.The tables below present the aging of the amortized cost of loans held for investment at June 30, 2020 and December 31, 2019, by class of loans. Mortgage loans past due include $75.1 million of delinquent loans in the GNMA buy-back option program. Servicers of loans underlying GNMA mortgage-backed securities must report as their own assets the defaulted loans that they have the option (but not the obligation) to repurchase, even when they elect not to exercise that option.
| June 30, 2020
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Loans 90+
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Days Past
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Due and
| 30-59 Days |  | 60-89 Days |  | 90+ Days |  | Total Past |  |  |  |  |  | Still
| Past Due |  | Past Due |  | Past Due |  | Due |  | Current |  | Total Loans |  | Accruing
| (In thousands)
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate | $ | 4,052 |  | $ | 1,446 |  | $ | 24,748 |  | $ | 30,246 |  | $ | 827,306 |  | $ | 857,552 |  | $ | -
Other commercial and industrial |  | 824 |  |  | 1,382 |  |  | 5,803 |  |  | 8,009 |  |  | 1,005,561 |  |  | 1,013,570 |  |  | -
US Loan Program |  | - |  |  | - |  |  | - |  |  | - |  |  | 325,358 |  |  | 325,358 |  |  | -
|  | 4,876 |  |  | 2,828 |  |  | 30,551 |  |  | 38,255 |  |  | 2,158,225 |  |  | 2,196,480 |  |  | -
Mortgage |  | 5,413 |  |  | 10,253 |  |  | 100,143 |  |  | 115,809 |  |  | 758,483 |  |  | 874,292 |  |  | 1,704
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personal loans |  | 7,829 |  |  | 3,316 |  |  | 1,350 |  |  | 12,495 |  |  | 332,073 |  |  | 344,568 |  |  | -
Credit lines |  | 1,480 |  |  | 994 |  |  | 818 |  |  | 3,292 |  |  | 45,534 |  |  | 48,826 |  |  | -
Credit cards |  | 1,256 |  |  | 3,374 |  |  | 2,372 |  |  | 7,002 |  |  | 58,196 |  |  | 65,198 |  |  | -
Overdraft |  | - |  |  | - |  |  | - |  |  | - |  |  | 116 |  |  | 116 |  |  | -
Auto |  | 51,255 |  |  | 38,570 |  |  | 10,200 |  |  | 100,025 |  |  | 1,354,962 |  |  | 1,454,987 |  |  | -
|  | 61,820 |  |  | 46,254 |  |  | 14,740 |  |  | 122,814 |  |  | 1,790,881 |  |  | 1,913,695 |  |  | -
Total loans | $ | 72,109 |  | $ | 59,335 |  | $ | 145,434 |  | $ | 276,878 |  | $ | 4,707,589 |  | $ | 4,984,467 |  | $ | 1,704
Upon adoption of CECL, Oriental elected to maintain pools of loans that were previously accounted for under ASC 310-30 and will continue to account for these pools as a unit of account. As such, PCD loans are not included in the table above.
| December 31, 2019
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Loans 90+
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Days Past
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Due and
| 30-59 Days |  | 60-89 Days |  | 90+ Days |  | Total Past |  |  |  |  |  | Still
| Past Due |  | Past Due |  | Past Due |  | Due |  | Current |  | Total Loans |  | Accruing
| (In thousands)
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate | $ | 994 |  | $ | 946 |  | $ | 17,495 |  | $ | 19,435 |  | $ | 847,271 |  | $ | 866,706 |  | $ | -
Other commercial and industrial |  | 7,584 |  |  | 371 |  |  | 2,716 |  |  | 10,671 |  |  | 712,855 |  |  | 723,526 |  |  | -
US Loan Program |  | - |  |  | - |  |  | - |  |  | - |  |  | 272,595 |  |  | 272,595 |  |  | -
|  | 8,578 |  |  | 1,317 |  |  | 20,211 |  |  | 30,106 |  |  | 1,832,721 |  |  | 1,862,827 |  |  | -
Mortgage |  | 9,285 |  |  | 13,105 |  |  | 94,109 |  |  | 116,499 |  |  | 783,096 |  |  | 899,595 |  |  | 2,418
Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personal loans |  | 4,978 |  |  | 2,123 |  |  | 1,579 |  |  | 8,680 |  |  | 358,477 |  |  | 367,157 |  |  | -
Credit lines |  | 533 |  |  | 20 |  |  | 221 |  |  | 774 |  |  | 51,840 |  |  | 52,614 |  |  | -
Credit cards |  | 1,438 |  |  | 417 |  |  | 896 |  |  | 2,751 |  |  | 72,451 |  |  | 75,202 |  |  | -
Overdraft |  | 51 |  |  | - |  |  | - |  |  | 51 |  |  | 165 |  |  | 216 |  |  | -
Auto |  | 72,336 |  |  | 31,412 |  |  | 14,270 |  |  | 118,018 |  |  | 1,350,864 |  |  | 1,468,882 |  |  | -
|  | 79,336 |  |  | 33,972 |  |  | 16,966 |  |  | 130,274 |  |  | 1,833,797 |  |  | 1,964,071 |  |  | -
Total loans | $ | 97,199 |  | $ | 48,394 |  | $ | 131,286 |  | $ | 276,879 |  | $ | 4,449,614 |  | $ | 4,726,493 |  | $ | 2,418
Before the CECL implementation, certain acquired loans were accounted for by Oriental in accordance with ASC 310-30.The carrying amount corresponding to acquired loans with deteriorated credit quality, including those accounted under ASC 310-30 by analogy, in the statements of financial condition at December 31, 2019 was as follows:
| December 31, 2019
|  | Scotiabank PR & USVI |  |  | BBVAPR |  |  | Eurobank
| (In thousands)
Contractual required payments receivable: | $ | 2,147,249 |  | $ | 1,086,367 |  | $ | 117,107
Less: Non-accretable discount |  | 294,424 |  |  | 340,466 |  |  | 4,285
Cash expected to be collected |  | 1,852,825 |  |  | 745,901 |  |  | 112,822
Less: Accretable yield |  | 458,885 |  |  | 214,886 |  |  | 34,441
Carrying amount, gross |  | 1,393,940 |  |  | 531,015 |  |  | 78,381
Less: allowance for loan and lease losses |  | - |  |  | 17,036 |  |  | 14,458
Carrying amount, net | $ | 1,393,940 |  | $ | 513,979 |  | $ | 63,923
The following table describes the accretable yield and non-accretable discount activity of acquired BBVAPR loans accounted for under ASC 310-30 for the quarter and six-month period ended June 30, 2019:
| Quarter Ended June 30, 2019
| Mortgage |  | Commercial |  | Auto |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 226,907 |  | $ | 37,379 |  | $ | 180 |  | $ | 427 |  | $ | 264,893
Accretion |  | (6,115) |  |  | (2,488) |  |  | (139) |  |  | (190) |  |  | (8,932)
Change in expected cash flows |  | - |  |  | 1,375 |  |  | 8 |  |  | 190 |  |  | 1,573
Transfer from (to) non-accretable discount |  | (3,243) |  |  | (1,628) |  |  | (6) |  |  | (139) |  |  | (5,016)
Balance at end of period | $ | 217,549 |  | $ | 34,638 |  | $ | 43 |  | $ | 288 |  | $ | 252,518
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 290,100 |  | $ | 9,911 |  | $ | 24,056 |  | $ | 18,835 |  | $ | 342,902
Change in actual and expected losses |  | (1,085) |  |  | (635) |  |  | 21 |  |  | (164) |  |  | (1,863)
Transfer (to) from accretable yield |  | 3,243 |  |  | 1,628 |  |  | 6 |  |  | 139 |  |  | 5,016
Balance at end of period | $ | 292,258 |  | $ | 10,904 |  | $ | 24,083 |  | $ | 18,810 |  | $ | 346,055
| Six-Month Period Ended June 30, 2019
| Mortgage |  | Commercial |  | Auto |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 232,199 |  | $ | 36,508 |  | $ | 243 |  | $ | 560 |  | $ | 269,510
Accretion |  | (12,465) |  |  | (5,144) |  |  | (355) |  |  | (488) |  |  | (18,452)
Change in expected cash flows |  | - |  |  | 4,640 |  |  | 11 |  |  | 488 |  |  | 5,139
Transfer from (to) non-accretable discount |  | (2,185) |  |  | (1,366) |  |  | 144 |  |  | (272) |  |  | (3,679)
Balance at end of period | $ | 217,549 |  | $ | 34,638 |  | $ | 43 |  | $ | 288 |  | $ | 252,518
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 291,887 |  | $ | 10,346 |  | $ | 24,245 |  | $ | 18,945 |  | $ | 345,423
Change in actual and expected losses |  | (1,814) |  |  | (808) |  |  | (18) |  |  | (407) |  |  | (3,047)
Transfer (to) from accretable yield |  | 2,185 |  |  | 1,366 |  |  | (144) |  |  | 272 |  |  | 3,679
Balance at end of period | $ | 292,258 |  | $ | 10,904 |  | $ | 24,083 |  | $ | 18,810 |  | $ | 346,055
The following table describes the accretable yield and non-accretable discount activity of acquired Eurobank loans for the quarter and six-month period ended June 30, 2019:
| Quarter Ended June 30, 2019
| Mortgage |  | Commercial |  | Leasing |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 37,022 |  | $ | 2,260 |  |  | - |  | $ | - |  | $ | 39,282
Accretion |  | (1,280) |  |  | (1,199) |  |  | (3) |  |  | (17) |  |  | (2,499)
Change in expected cash flows |  | 30 |  |  | 910 |  |  | (10) |  |  | 31 |  |  | 961
Transfer from (to) non-accretable discount |  | 766 |  |  | (115) |  |  | 13 |  |  | (14) |  |  | 650
Balance at end of period | $ | 36,538 |  | $ | 1,856 |  | $ | - |  | $ | - |  | $ | 38,394
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 2,426 |  | $ | - |  | $ | - |  | $ | 116 |  | $ | 2,542
Change in actual and expected losses |  | 21 |  |  | 159 |  |  | 13 |  |  | (12) |  |  | 181
Transfer (to) from accretable yield |  | (766) |  |  | (159) |  |  | (13) |  |  | 14 |  |  | (924)
Balance at end of period | $ | 1,681 |  | $ | - |  | $ | - |  | $ | 118 |  | $ | 1,799
| Six-Month Period Ended June 30, 2019
| Mortgage |  | Commercial |  | Leasing |  | Consumer |  | Total
| (In thousands)
Accretable Yield Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 38,389 |  | $ | 3,310 |  |  | - |  | $ | - |  | $ | 41,699
Accretion |  | (2,631) |  |  | (2,364) |  |  | (15) |  |  | (63) |  |  | (5,073)
Change in expected cash flows |  | (393) |  |  | 866 |  |  | (41) |  |  | 118 |  |  | 550
Transfer from (to) non-accretable discount |  | 1,173 |  |  | 44 |  |  | 56 |  |  | (55) |  |  | 1,218
Balance at end of period | $ | 36,538 |  | $ | 1,856 |  | $ | - |  | $ | - |  | $ | 38,394
Non-Accretable Discount Activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 2,826 |  | $ | - |  | $ | - |  | $ | 133 |  | $ | 2,959
Change in actual and expected losses |  | 28 |  |  | 44 |  |  | 56 |  |  | (70) |  |  | 58
Transfer (to) from accretable yield |  | (1,173) |  |  | (44) |  |  | (56) |  |  | 55 |  |  | (1,218)
Balance at end of period | $ | 1,681 |  | $ | - |  | $ | - |  | $ | 118 |  | $ | 1,799
Non-accrual Loans The following table presents the amortized cost basis of loans on nonaccrual status as of June 30, 2020:
| June 30, 2020
| Nonaccrual with |  | Nonaccrual with no
| Allowance |  | Allowance
| for Credit Loss |  | for Credit Loss
| (In thousands)
Non-PCD: |  |  |  |  |
Commercial |  |  |  |  |
Commercial secured by real estate | $ | 11,092 |  | $ | 26,850
Other commercial and industrial |  | 3,056 |  |  | 3,191
|  | 14,148 |  |  | 30,041
Mortgage |  | 18,142 |  |  | 8,739
Consumer |  |  |  |  |
Personal loans |  | 1,167 |  |  | 570
Personal lines of credit |  | 823 |  |  | -
Credit cards |  | 2,373 |  |  | -
Auto and leasing |  | 10,540 |  |  | -
|  | 14,903 |  |  | 570
Total non-accrual loans | $ | 47,193 |  | $ | 39,350
PCD: |  |  |  |  |
Commercial |  |  |  |  |
Commercial secured by real estate | $ | 12,188 |  | $ | 3,077
Other commercial and industrial |  | 65,797 |  |  | -
|  | 77,985 |  |  | 3,077
Mortgage |  | 1,375 |  |  | -
Consumer |  |  |  |  |
Personal loans |  | 12 |  |  | -
|  | 12 |  |  | -
Total non-accrual loans | $ | 79,372 |  | $ | 3,077
Upon adoption of CECL, Oriental elected to maintain pools of loans that were previously accounted for under ASC 310-30 and will continue to account for these pools as a unit of account. As such, for these loans the determination of nonaccrual or accrual status is made at the pool level, not the individual loan level. The following table presents the recorded investment in loans in non-accrual status by class of loans as of December 31, 2019:
| December 31,
| 2019
| (In thousands)
Commercial |  |
Commercial secured by real estate | $ | 32,720
Other commercial and industrial |  | 9,886
|  | 42,606
Mortgage |  | 18,735
Consumer |  |
Personal loans |  | 4,164
Personal lines of credit |  | 227
Credit cards |  | 896
Auto and leasing |  | 14,295
|  | 19,582
Total non-accrual loans | $ | 80,923
Delinquent residential mortgage loans insured or guaranteed under applicable FHA and VA programs are classified as non-performing loans when they become 90 days or more past due but are not placed in non-accrual status until they become 12 months or more past due, since they are insured loans. Therefore, those loans are included as non-performing loans but excluded from non-accrual loans. At June 30, 2020 and December 31, 2019, loans whose terms have been extended and which were classified as troubled-debt restructurings that were not included in non-accrual loans amounted to $105.3 million and $103.7 million, respectively, as they were performing under their new terms. Modifications The following tables present the troubled-debt restructurings in all loan portfolios during the quarters and six-month periods ended June 30, 2020 and 2019.
| Quarter Ended June 30, 2020
| Number of contracts |  | Pre-Modification Outstanding Recorded Investment |  | Pre-Modification Weighted Average Rate |  | Pre-Modification Weighted Average Term (in Months) |  | Post-Modification Outstanding Recorded Investment |  | Post-Modification Weighted Average Rate |  | Post-Modification Weighted Average Term (in Months)
| (Dollars in thousands)
Consumer | 1 |  |  | 21 |  | 5.99% |  | 60 |  |  | 20 |  | 6.50% |  | 72
| Six-Month Period Ended June 30, 2020
| Number of contracts |  | Pre-Modification Outstanding Recorded Investment |  | Pre-Modification Weighted Average Rate |  | Pre-Modification Weighted Average Term (in Months) |  | Post-Modification Outstanding Recorded Investment |  | Post-Modification Weighted Average Rate |  | Post-Modification Weighted Average Term (in Months)
| (Dollars in thousands)
Mortgage | 26 |  | $ | 3,093 |  | 5.14% |  | 359 |  | $ | 3,046 |  | 4.29% |  | 360
Commercial | 1 |  |  | 281 |  | 8.00% |  | 105 |  |  | 281 |  | 6.00% |  | 240
Consumer | 16 |  |  | 220 |  | 12.95% |  | 67 |  |  | 225 |  | 10.63% |  | 81
| Quarter Ended June 30, 2019
| Number of contracts |  | Pre-Modification Outstanding Recorded Investment |  | Pre-Modification Weighted Average Rate |  | Pre-Modification Weighted Average Term (in Months) |  | Post-Modification Outstanding Recorded Investment |  | Post-Modification Weighted Average Rate |  | Post-Modification Weighted Average Term (in Months)
| (Dollars in thousands)
Mortgage | 50 |  | $ | 7,000 |  | 6.14% |  | 388 |  | $ | 6,345 |  | 5.45% |  | 341
Commercial | 1 |  |  | 1,157 |  | 7.00% |  | 55 |  |  | 1,157 |  | 5.75% |  | 86
Consumer | 70 |  |  | 1,052 |  | 15.57% |  | 69 |  |  | 1,082 |  | 11.56% |  | 74
Auto | 13 |  |  | 193 |  | 7.58% |  | 70 |  |  | 200 |  | 9.18% |  | 46
| Six-Month Period Ended June 30, 2019
| Number of contracts |  | Pre-Modification Outstanding Recorded Investment |  | Pre-Modification Weighted Average Rate |  | Pre-Modification Weighted Average Term (in Months) |  | Post-Modification Outstanding Recorded Investment |  | Post-Modification Weighted Average Rate |  | Post-Modification Weighted Average Term (in Months)
| (Dollars in thousands)
Mortgage | 88 |  |  | 11,494 |  | 5.90% |  | 388 |  | $ | 10,586 |  | 5.11% |  | 346
Commercial | 2 |  |  | 1,164 |  | 7.03% |  | 55 |  |  | 1,164 |  | 5.78% |  | 86
Consumer | 141 |  |  | 2,015 |  | 15.39% |  | 67 |  |  | 2,049 |  | 1.70% |  | 74
Auto | 13 |  |  | 193 |  | 7.58% |  | 70 |  |  | 200 |  | 9.18% |  | 46
Upon adoption of CECL, Oriental elected to maintain pools of loans that were previously accounted for under ASC 310-30 and will continue to account for these pools as a unit of account. As such, PCD loans are not included in the table above. The following table presents troubled-debt restructurings for which there was a payment default during the twelve-month periods ended June 30, 2020 and 2019:
| Twelve-month Period Ended June 30,
| 2020 |  |  | 2019
| Number of Contracts |  | Recorded Investment |  |  | Number of Contracts |  | Recorded Investment
| (Dollars in thousands)
Mortgage | 17 |  | $ | 2,267 |  |  | 22 |  | $ | 2,830
Commercial | - |  | $ | - |  |  | 3 |  | $ | 1,935
Consumer | 90 |  | $ | 1,231 |  |  | 66 |  | $ | 928
Auto | 3 |  | $ | 32 |  |  | 1 |  | $ | 27
Oriental offers various types of concessions when modifying a loan. Concessions made to the original contractual terms of the loan typically consists of the deferral of interest and/or principal payments due to deterioration in the borrowers' financial condition. In these cases, the principal balance on the TDR had matured and/or was in default at the time of restructure, and there were no commitments to lend additional funds to the borrower during the quarters and six-month periods ended June 30, 2020 and 2019. TDRs disclosed above were not related to COVID-19 modifications. As discussed in Note 1 to these financial statements, Section 4013 of CARES Act and the "Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised)" provided banks an option to elect to not account for certain loan modifications related to COVID-19 as TDRs as long as the borrowers were not more than 30 days past due as of December 31, 2019 and at the time of modification program implementation, respectively, and meets other applicable criteria. Oriental executed loan deferrals on outstanding balances of approximately $2.1 billion resulting from the COVID-19 pandemic that were not classified as a TDR at June 30, 2020. Collateral-dependent Loans The table below present the amortized cost of collateral-dependent loans held for investment at June 30, 2020, by class of loans.
| June 30, 2020
| Real Estate |  | Equipment |  | Total
| (In thousands)
Commercial loans: |  |  |  |  |  |  |  |
Commercial secured by real estate | $ | 29,656 |  | $ | - |  | $ | 29,656
Other commercial and industrial |  | 3,108 |  |  | - |  |  | 3,108
Total loans | $ | 32,764 |  | $ | - |  | $ | 32,764
PCD loans, except for single pooled loans, are not included in the table above as their unit of account is the loan pool. Credit Quality Indicators Oriental categorizes its loans into loan grades based on relevant information about the ability of borrowers to service their debt, such as economic conditions, portfolio risk characteristics, prior loss experience, and the results of periodic credit reviews of individual loans. Oriental uses the following definitions for loan grades: Pass: Loans classified as “pass” have a well-defined primary source of repayment very likely to be sufficient, with no apparent risk, strong financial position, minimal operating risk, profitability, liquidity and capitalization better than industry standards. Special Mention: Loans classified as “special mention” have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard: Loans classified as “substandard” are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified as “doubtful” have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, questionable and improbable. Loss: Loans classified as “loss” are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be effected in the future. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass loans. As of June 30, 2020 and based on the most recent analysis performed, the risk category of loans subject to risk rating by class of loans is as follows.
| Term Loans |  | Revolving |  |  |
| Amortized Cost Basis by Origination Year |  | Loans |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Amortized |  |
| 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior |  | Cost Basis |  | Total
| (In thousands)
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loan grade: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 28,681 |  | $ | 128,098 |  | $ | 123,096 |  | $ | 89,243 |  | $ | 61,494 |  | $ | 266,311 |  | $ | 57,162 |  | $ | 754,085
Special Mention |  | 10,218 |  |  | 3,065 |  |  | 2,109 |  |  | 17,481 |  |  | 115 |  |  | 22,188 |  |  | 1,539 |  |  | 56,715
Substandard |  | - |  |  | 338 |  |  | 893 |  |  | 8,644 |  |  | 609 |  |  | 27,376 |  |  | 8,859 |  |  | 46,719
Doubtful |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 33 |  |  | 33
Loss |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Total commercial secured by real estate |  | 38,899 |  |  | 131,501 |  |  | 126,098 |  |  | 115,368 |  |  | 62,218 |  |  | 315,875 |  |  | 67,593 |  |  | 857,552
Other commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loan grade: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 288,156 |  |  | 104,225 |  |  | 100,426 |  |  | 16,379 |  |  | 9,764 |  |  | 81,412 |  |  | 397,183 |  |  | 997,545
Special Mention |  | - |  |  | 59 |  |  | - |  |  | - |  |  | 6 |  |  | 5,726 |  |  | 3,286 |  |  | 9,077
Substandard |  | - |  |  | 811 |  |  | 32 |  |  | 219 |  |  | 2,952 |  |  | 106 |  |  | 2,756 |  |  | 6,876
Doubtful |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 72 |  |  | 72
Loss |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Total other commercial and industrial: |  | 288,156 |  |  | 105,095 |  |  | 100,458 |  |  | 16,598 |  |  | 12,722 |  |  | 87,244 |  |  | 403,297 |  |  | 1,013,570
US Loan Program: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loan grade: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 47,733 |  |  | 67,272 |  |  | 118,108 |  |  | 7,211 |  |  | - |  |  | - |  |  | 44,478 |  |  | 284,802
Special Mention |  | - |  |  | - |  |  | 35,973 |  |  | - |  |  | - |  |  | - |  |  | 1,250 |  |  | 37,223
Substandard |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 3,333 |  |  | 3,333
Doubtful |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Loss |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Total US loan program: |  | 47,733 |  |  | 67,272 |  |  | 154,081 |  |  | 7,211 |  |  | - |  |  | - |  |  | 49,061 |  |  | 325,358
Total commercial loans | $ | 374,788 |  | $ | 303,868 |  | $ | 380,637 |  | $ | 139,177 |  | $ | 74,940 |  | $ | 403,119 |  | $ | 519,951 |  | $ | 2,196,480
At June 30, 2020, the balance of revolving loans converted to term loans was $25.0 million. Oriental considers the performance of the loan portfolio and its impact on the allowance for credit losses. For mortgage and consumer loan classes, Oriental also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the amortized cost in mortgage and consumer loans based on payment activity:
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Revolving Loans |  |  |
| Term Loans |  | Revolving |  | Converted to |  |  |
| Amortized Cost Basis by Origination Year |  | Loans |  | Term Loans |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Amortized |  | Amortized |  |
| 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior |  | Cost Basis |  | Cost Basis |  | Total
| (In thousands)
Mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment performance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | $ | 704 |  | $ | 22,423 |  | $ | 34,414 |  | $ | 36,355 |  | $ | 42,626 |  | $ | 707,282 |  | $ | - |  | $ | - |  | $ | 843,804
Nonperforming |  | - |  |  | 150 |  |  | - |  |  | 190 |  |  | 566 |  |  | 29,582 |  |  | - |  |  | - |  |  | 30,488
Total mortgage loans: |  | 704 |  |  | 22,573 |  |  | 34,414 |  |  | 36,545 |  |  | 43,192 |  |  | 736,864 |  |  | - |  |  | - |  |  | 874,292
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personal loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment performance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | 51,866 |  |  | 143,803 |  |  | 75,192 |  |  | 39,144 |  |  | 20,273 |  |  | 12,552 |  |  | - |  |  | - |  |  | 342,830
Nonperforming |  | 184 |  |  | 336 |  |  | 472 |  |  | 124 |  |  | 116 |  |  | 506 |  |  | - |  |  | - |  |  | 1,738
Total personal loans |  | 52,050 |  |  | 144,139 |  |  | 75,664 |  |  | 39,268 |  |  | 20,389 |  |  | 13,058 |  |  | - |  |  | - |  |  | 344,568
Credit lines: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment performance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 48,003 |  |  | - |  |  | 48,003
Nonperforming |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 823 |  |  | - |  |  | 823
Total credit lines |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 48,826 |  |  | - |  |  | 48,826
Credit cards: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment performance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 62,825 |  |  | - |  |  | 62,825
Nonperforming |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 2,373 |  |  | - |  |  | 2,373
Total credit cards |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 65,198 |  |  | - |  |  | 65,198
Overdrafts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment performance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 116 |  |  | - |  |  | 116
Nonperforming |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | -
Total overdrafts |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 116 |  |  | - |  |  | 116
Total consumer loans |  | 52,050 |  |  | 144,139 |  |  | 75,664 |  |  | 39,268 |  |  | 20,389 |  |  | 13,058 |  |  | 114,140 |  |  | - |  |  | 458,708
Total mortgage and consumer loans | $ | 52,754 |  | $ | 166,712 |  | $ | 110,078 |  | $ | 75,813 |  | $ | 63,581 |  | $ | 749,922 |  | $ | 114,140 |  | $ | - |  | $ | 1,333,000
Oriental evaluates credit quality for auto loans and leases based on FICO score. The following table presents the amortized cost in auto loans and leases based on FICO score:
| Term Loans |  |  |
| Amortized Cost Basis by Origination Year |  |  |
| 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior |  | Total
| (In thousands)
Auto: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FICO score: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-660 |  | 41,285 |  |  | 151,696 |  |  | 131,984 |  |  | 78,483 |  |  | 44,457 |  |  | 41,277 |  |  | 489,182
661-699 |  | 22,439 |  |  | 94,226 |  |  | 61,715 |  |  | 31,054 |  |  | 17,607 |  |  | 16,402 |  |  | 243,443
700+ |  | 50,281 |  |  | 204,107 |  |  | 187,230 |  |  | 101,256 |  |  | 57,571 |  |  | 53,383 |  |  | 653,828
No FICO |  | 9,851 |  |  | 37,871 |  |  | 8,883 |  |  | 5,704 |  |  | 3,391 |  |  | 2,834 |  |  | 68,534
Total auto: | $ | 123,856 |  | $ | 487,900 |  | $ | 389,812 |  | $ | 216,497 |  | $ | 123,026 |  | $ | 113,896 |  | $ | 1,454,987
Upon adoption of CECL, Oriental elected to maintain pools of loans that were previously accounted for under ASC 310-30 and will continue to account for these pools as a unit of account. As such, PCD loans are not included in the table above. As of December 31, 2019, and based on the most recent analysis performed, the loan grading of gross originated loans and acquired loans accounted for under ASC 310-20 subject to loan grade by class of loans was as follows:
| December 31, 2019
| Loan Grades
| Balance |  |  |  |  | Special |  |  |  |  |  |  |  |
| Outstanding |  | Pass |  | Mention |  | Substandard |  | Doubtful |  | Loss
| (In thousands)
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate | $ | 866,706 |  | $ | 762,443 |  | $ | 55,870 |  | $ | 48,357 |  | $ | 36 |  | $ | -
Other commercial and industrial |  | 723,526 |  |  | 706,831 |  |  | 6,634 |  |  | 9,960 |  |  | 101 |  |  | -
US Loan Program |  | 272,595 |  |  | 262,745 |  |  | 9,850 |  |  | - |  |  | - |  |  | -
Total Commercial | $ | 1,862,827 |  | $ | 1,732,019 |  | $ | 72,354 |  | $ | 58,317 |  | $ | 137 |  | $ | -
| December 31, 2019
| Loan Grades
| Balance |  |  |  |  | Special |  |  |  |  |  |  |  |
| Outstanding |  | Pass |  | Mention |  | Substandard |  | Doubtful |  | Loss
Retail |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage | $ | 899,595 |  | $ | 805,486 |  | $ | - |  | $ | 94,109 |  | $ | - |  | $ | -
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personal loans |  | 367,157 |  |  | 365,579 |  |  | - |  |  | 1,578 |  |  | - |  |  | -
Personal lines of credit |  | 52,614 |  |  | 52,393 |  |  | - |  |  | 221 |  |  | - |  |  | -
Credit cards |  | 75,202 |  |  | 74,306 |  |  | - |  |  | 896 |  |  | - |  |  | -
Overdrafts |  | 216 |  |  | 165 |  |  | - |  |  | 51 |  |  | - |  |  | -
Auto |  | 1,468,882 |  |  | 1,454,612 |  |  | - |  |  | 14,270 |  |  | - |  |  | -
Total consumer loans |  | 1,964,071 |  |  | 1,947,055 |  |  | - |  |  | 17,016 |  |  | - |  |  | -
Total retail loans | $ | 2,863,666 |  | $ | 2,752,541 |  | $ | - |  | $ | 111,125 |  | $ | - |  | $ | -

X
- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 + Details
Name: | us-gaap_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration